UAE and Oman sign agreement to develop Al Rawdah special economic zone

Muscat, Oman: Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, today witnessed the signing of an agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone. The zone is located in the Wilayat of Mahadha, Al Buraimi Governorate, in the Sultanate of Oman.

The signing took place during Sheikh Hamdan’s visit to Oman, where he led a high-level UAE delegation. The event was also attended by Sayyid Theyazin bin Haitham Al Said, Oman's Minister of Culture, Sports and Youth.

The agreement is a significant step in the expanding economic partnership between the UAE and Oman. It was signed by Eng. Ahmed bin Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), and Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, representing Mahadha Development Company — a UAE-Omani joint venture in which DP World is the majority stakeholder.

Sultan Ahmed bin Sulayem said:

“The Al Rawdah Special Economic Zone represents a new chapter in the growing economic relationship between the UAE and the Sultanate of Oman. Through close collaboration with OPAZ and our Omani partners, this new zone will strengthen our deep trade ties while reflecting our shared ambition for sustainable and diversified economic growth.”

He added that DP World aims to build a world-class platform that enhances connectivity and delivers long-term value to both nations.

Eng. Ahmed bin Hassan Al Dheeb emphasised the zone’s alignment with Oman Vision 2040:

“The Al Rawdah Special Economic Zone has been designed to support key development goals, including creating jobs, attracting advanced technologies, and fostering a business-friendly environment.”

He noted that its strategic location near the Oman-UAE border ensures seamless connectivity to both Sohar Port and Jebel Ali Port, boosting logistics and market access across Gulf, Asian, and African trade routes.

Phase 1 of the zone will span 14 square kilometers, with future expansion plans to reach 25 square kilometers. The zone will be directly connected to Jebel Ali Port in Dubai and key Omani ports, enhancing cross-border logistics and trade.

Mahadha Development Company will lead the development of infrastructure, prepare the masterplan and environmental studies, and design the layout. Target industries in the first phase include:

·         Manufacturing

·         Logistics

·         Warehousing

·         Pharmaceuticals and medical supplies

·         Plastics

·         Mining

·         Food processing

·         Security and safety services

All will be facilitated through a one-stop-shop service model.

The Al Rawdah project aims to:

·         Strengthen supply chains

·         Accelerate re-export activity

·         Enhance logistics between Oman, the UAE, and global markets

·         Attract foreign direct investment (FDI)

·         Generate thousands of jobs

·         Increase industrial output

The project supports both the Dubai Economic Agenda (D33) and Oman Vision 2040.

In 2024, non-oil trade between the UAE and Oman reached a record Dh56 billion, a 9.8% increase from 2023. The Al Rawdah Zone is expected to build on this momentum by offering a modern trade and manufacturing ecosystem.

DP World brings over four decades of experience in developing and managing free zones, including the Jebel Ali Free Zone (Jafza) — one of the most successful free zones globally. With 11 economic zones in its portfolio, DP World is well-positioned to create a future-ready platform in Oman, in partnership with OPAZ.

Also present at the signing were Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs; Sheikh Salem bin Khalid Al Qassimi, Minister of Culture; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Application; Maryam bint Ahmed Al Hammadi, Minister of State; Sultan bin Saeed Al Mansoori, Chairman of Dubai Chambers; Abdulla Al Basti, Secretary General of The Executive Council of Dubai; Lieutenant General Talal Belhoul Al Falasi, President of Dubai’s State Security Department; and Helal Saeed Al Marri, Director General of Dubai Department of Economy and Tourism.